{"id":69752,"date":"2020-01-08T09:57:22","date_gmt":"2020-01-08T09:57:22","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=69752"},"modified":"2020-03-12T09:04:17","modified_gmt":"2020-03-12T09:04:17","slug":"scotland-payment-reform","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/scotland-payment-reform\/69752\/","title":{"rendered":"BESA urges Scotland to lead construction industry payment reform"},"content":{"rendered":"<h2>The <a href=\"https:\/\/www.thebesa.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Building Engineering Services Association<\/a> (BESA) has called on its members in Scotland to embrace the \u2018golden opportunity\u2019 it has to lead a payment reform<\/h2>\n<p>The BESA has urged its members in Scotland to take part in the <a href=\"https:\/\/www.gov.scot\/\" target=\"_blank\" rel=\"noopener noreferrer\">Scottish Government\u2019s<\/a> consultation about the practice of cash retentions.<\/p>\n<p>The consultation follows the Scottish Government\u2019s commitment to review the use of cash retentions in Scotland\u2019s construction supply chains, which are valued at around \u00a3124m annually.<\/p>\n<h3>BESA Scotland members<\/h3>\n<p>95% of BESA Scotland members who responded to the sector\u2019s latest State of Trade Survey say part of their turnover is tied up in retentions with 5% reporting that more than 20% of their turnover was withheld in this way. This seriously hampers their ability to invest in skills, productivity and business growth.<\/p>\n<p>A recent industry-wide survey carried out by BESA and other trade associations found that <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/late-payment-besa\/67386\/\" target=\"_blank\" rel=\"noopener noreferrer\">nine out of 10 small business owners were suffering from stress<\/a> and other mental health conditions because of late payment linked to cash retentions.<\/p>\n<p>BESA director of legal &amp; commercial, Debbie Petford, said: \u201cThese sobering numbers tell us what we have known anecdotally for a long time. Poor payment behaviour was part of a culture, highlighted in the Hackitt Review of building regulations and fire safety, that leads to broken buildings and broken people.\u201d<\/p>\n<h3>Retention deposit scheme<\/h3>\n<p>The Scottish Government published independent research from Pye Tait alongside its consultation. BESA supports the main recommendation of the research that private sector retentions should be ring-fenced in a retention deposit scheme (RDS) kept separate from the client and main contractor \u2013 similar to tenancy deposits in the private rental market.<\/p>\n<p>The RDS option reflects BESA\u2019s two-year campaign in support of Peter Aldous MP\u2019s Construction (Retentions Deposit Schemes) Bill in the UK Parliament, that had the backing of 277 MPs and 85 industry bodies representing over half a million businesses before Parliament was dissolved.<\/p>\n<p>Petford said: \u201cWe plan to push hard for the reintroduction of the <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/one-in-four-mps-now-support-aldous-bill\/42287\/\" target=\"_blank\" rel=\"noopener noreferrer\">Aldous Bill<\/a> in the new Parliament because, despite the second anniversary of the Carillion collapse rapidly approaching, there has been little progress in Whitehall and Westminster on retention reform.<\/p>\n<p>\u201cCarillion was a classic example of retention abuse and the fallout from that episode was catastrophic for thousands of perfectly sound small businesses.<\/p>\n<p>\u201cThe recent Welsh National Assembly committee hearing and this Scottish Government consultation are promising signs that devolved legislatures could pass laws similar to the Aldous Bill. This would mean hardworking sub-contractors in Scotland and Wales could be protected from upstream insolvencies and systemic late or non-payment of money they are owed long before their English colleagues.\u201d<\/p>\n<blockquote><p><span style=\"font-size: 14pt;\">\u201cThe current consultation is a golden opportunity for Scotland to lead the rest of the UK in this sensible and <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/industry-reforms\/69232\/\" target=\"_blank\" rel=\"noopener noreferrer\">urgently needed reform<\/a>.\u201d<\/span><\/p><\/blockquote>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The Building Engineering Services Association (BESA) has called on its members in Scotland to embrace the \u2018golden opportunity\u2019 it has to lead a payment reform.<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[20347,712,676,908,283,276],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-69752","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-administration","8":"tag-besa","9":"tag-construction","10":"tag-economy","11":"tag-finance","12":"tag-government"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>BESA urges Scotland to lead construction industry payment reform<\/title>\n<meta name=\"description\" content=\"The Building Engineering Services Association has called on its members in Scotland to embrace the \u2018golden opportunity\u2019 it has to lead a payment reform\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/scotland-payment-reform\/69752\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BESA urges Scotland to lead the construction industry payment reform\" \/>\n<meta property=\"og:description\" content=\"The Building Engineering Services Association (BESA) has called on its members in Scotland to embrace the \u2018golden opportunity\u2019 it has to lead a payment reform\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/scotland-payment-reform\/69752\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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